By Joyce Kryszak
http://stream.publicbroadcasting.net/production/mp3/wbfo/local-wbfo-825507.mp3
Albany, NY – Governor David Paterson and state legislative leaders Wednesday announced a deal to remove $1.3 billion in proposed so-called "nuisance taxes." But questions remain about how the state will close the budget gap.
Paterson said the federal stimulus money allows the state to eliminate additional taxes he included in his proposed budget to help close a massive deficit. Now off the table are extra taxes on such things as some clothing purchases, movies, and sugared soda products.
Paterson said he found out at a series of town hall meetings just how unpopular the taxes are.
But the governor cautioned that the stimulus money does not eliminate the need to reform and cut back on state spending. The state will get $11 billion in a one shot federal boost. The state faces a deficit of more than $14 billion. Some favor additional taxes on New York's wealthiest citizens. Paterson said that would be a mistake.
"When we have raised taxes on the wealthy in the past that we have seen a loss of job growth almost immediately and a loss of population that is escalating," said Paterson.
Still, the governor would not take the possibility of a tax on the wealthy off the table. The state faces short and long term challenges in funding everything from healthcare to education. Senate Majority Leader Malcolm Smith said the real work is just beginning. But he said now at least people know Albany is listening
Lawamkers said they will be conferencing into the late nights and weekends to find long term budget solutions.
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